Vancouver City Staff Recommends Dropping Bitcoin Reserve Motion
Vancouver city staff has advised the council to rescind the 2024 motion to make the city “bitcoin-friendly” after concluding that Bitcoin (BTC) is not a permissible investment under the Vancouver Charter, the provincial law governing municipal operations.
In a report submitted to council, staff stated: “Staff has conclusively determined that under the Vancouver Charter, Bitcoin is not an allowable investment asset for the City, and therefore recommends that this work be concluded.”
The recommendation also cites the need to reprioritize staff resources and coordinate with other municipal priorities.
Origin of the Motion
The original motion, titled “Preserving of the City’s Purchasing Power Through Diversification of Financial Reserves – Becoming A Bitcoin Friendly City”, was introduced by Mayor Ken Sim in November 2024. Sim, a vocal Bitcoin advocate, described BTC as “the greatest invention in human history” and pledged to donate $10,000 worth of Bitcoin to the city.
In December 2024, council approved the motion and directed staff to assess feasibility and report back by Q1 2025. No public report was released until this week.
Provincial and Legal Pushback
The Ministry of Municipal Affairs of British Columbia previously stated that local governments, including Vancouver, are prohibited from holding financial reserves in cryptocurrency due to exposure to “undue risk.”
This aligns with the staff’s legal conclusion under the Vancouver Charter, which restricts allowable municipal investments to traditional, low-risk assets.
Market Context & BTC Price Movement
Bitcoin has been highly volatile since late 2024:
- Reached an all-time high above $126,000
- Dropped ~50% to lows around $63,000 over four months
- Currently trading at $70,166 (as of March 6, 2026)
The proposed reserve would have allocated a portion of municipal funds to BTC to hedge against inflation and currency volatility — a strategy adopted by some U.S. cities and companies (e.g., MicroStrategy) but now explicitly ruled out in Vancouver.
Implications for Crypto-Friendly Policies in Canada
The decision highlights the regulatory divide between federal/provincial governments and municipal leaders on cryptocurrency exposure. While Canada has made progress on regulated crypto products (e.g., Bitcoin and Ethereum ETFs), direct municipal investment in BTC remains restricted.
Mayor Sim’s motion represented one of the most high-profile attempts by a major Canadian city to embrace Bitcoin reserves. Its likely rejection reinforces the current legal boundary.
Reviews:
Leave Your Review Here:
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
